Bitcoin experienced an extreme rally last day, rising from $ 33,000 to $ 37,000 at the time of this writing. The cryptocurrency is now above $ 37,000 for the first time since the weekend and is up 10% in the previous day’s trading session.
The cryptocurrency outperforms altcoins higher in this step. While Bitcoin gained 10% in the trading session last day, Altcoins like Ethereum and XRP only increased 3-5%.
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Bitcoin bottom is in?
Analysts believe that Bitcoin could bottom out after the correction to $ 30,000 earlier this week, which took many traders by surprise.
Ki Young Ju, the CEO of CryptoQuant, stated that there is a lot of buying pressure in the $ 30,000 to $ 32,000 range on the cash exchanges. This is evidenced by the fact that at the time of the decline there was a large amount of capital outflows from centralized exchanges, suggesting an accumulation by large players:
“There are many institutional investors who have bought $ 30,000 to $ 32,000 in BTC. The Coinbase outflow on January 2nd was a three-year high. “
There are many institutional investors who have bought $ 30,000 to $ 32,000 in BTC. The Coinbase outflow on January 2nd was a three-year high.
Speculative guess, but if these guys are behind this bull run they will protect the 30k level. Even if we had a bath it wouldn’t go below 28k. pic.twitter.com/3GXLpjyWbp
– Ki Young Ju @ (@ki_young_ju) January 13, 2021
Ki Young Ju suggests that these “guys behind this bull run protect the $ 30,000 level”.
Another reason why analysts believe Bitcoin price has hit rock bottom is because of the extremely high number of liquidations on Sunday and Monday.
More than $ 2.5 billion worth of crypto asset futures positions were wiped out that day due to massive downside volatility. Many think that this surge in liquidations, which was equivalent to a surge in volume, is a likely sign that Bitcoin and the rest of the crypto-asset market are at a tipping point.
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Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt Bitcoin Passes $37,000 Amid Massive Recovery Rally